The framework of analysis will not be the conventional description of risk as it is stylistically shown above. Instead, I offer some "outside the box" thinking and focus on the following:
- Mis-specifying investment objectives and risk preferences
- How to take advantage of volatility
- Regime change risk in the form of:
- Unexpected tail-risk
- Changes in market environment (conventional regime change);
- Slow changing regimes that investors may be unaware of;
- Changes in modeling assumptions.
The full post can be found here.